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Occidental’s First Large-Scale DAC Hub to Capture 500,000 Tonnes of CO2 Annually by 2025

Published by Todd Bush on August 12, 2025

Occidental is preparing to launch operations at its Stratos DAC hub in Ector County, Texas, by the end of 2025. CEO Vicky Hollub confirmed during the company’s quarterly earnings call that two capture trains have transitioned to operations and begun wet commissioning with water circulation.

Stratos will have the capacity to capture 500,000 tonnes of atmospheric CO₂ annually, marking a major milestone in Occidental’s carbon management strategy. The company has already secured significant carbon dioxide removal (CDR) credit sales, including 50,000 tonnes purchased by JP Morgan and 10,000 tonnes by Palo Alto Networks.

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The project’s progress follows last month’s U.S. decision to maintain the 45Q tax incentive for carbon capture and sequestration under the One Big Beautiful Bill Act. Hollub noted, “The new law levels the playing field between carbon storage and utilization pathways like DAC to EOR. Both can and likely will play an important role across global energy supply chains and carbon management.”

In parallel, Occidental is developing a second DAC facility in South Texas in partnership with Abu Dhabi National Oil Company’s investment arm, XRG Supported by a U.S. Department of Energy grant of up to $650 million and more than $500 million from XRG, the project is moving toward a final investment decision, with an initial focus on pre-sales of carbon credits.

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